New Jersey § 17:12b-59

§ 17:12b-59.

In addition to the powers to adopt pension plans as set forth in this act, a State

association may subject to the approval of the commissioner, contract to make pension

payments to retired officers and employees; provided, however, that said officers

or employees have been employed by the State association for the minimum time periods

as set forth in this act for eligibility to receive pension payments. Without limiting the generality of the type of contract, every such contract adopted

by a State association shall contain the following provisions: (a) That in no event shall payments provided for under a contract exceed the maximum

payments as limited for officers or employees covered under a pension plan or plans

in operation in the association, unless said payments under such plan are, in the

opinion of the board of directors, determined to be inadequate. (b) That the amount of the payments, provided for under said contract, shall be subject

to reduction in the event said payments exceed that portion of the net income of the

State association, which said payments bore to the average net income of the State

association for the 3 years immediately preceding the commencement of said payments;

such reduction in said payments shall be proportionate to the decrease in net income. Net income for this purpose shall mean net income as defined in section 7 of this

act, 1 less any amounts required to be placed in reserve accounts under the provisions of

this act. (c) That the board may terminate such payments at any time. (d) That where the contracting State association is an insured association such payments

shall automatically terminate in the event of a default as defined in Title IV of

the National Housing Act. 2 1

N.J.S.A. § 17:12B-7. 2

12 U.S.C.A. § 1724.